Online payment services enabler PayU is soon acquiring Californian digital payments company Wibmo in a $70 million deal. The deal is most likely to boost the payments services to institutions in India and other high growth markets by amalgamating the services of the two companies.
“India is a priority market for PayU and we are committed to making digital payments frictionless through our innovative products and services, supporting the Government’s vision of a digital India. PayU’s technologically future-ready products are defining and reinventing India’s payments landscape, supporting the country’s transition to a cashless, digital economy,” said Aakash Moondhra, CFO, PayU Global.
“Through the acquisition of Wibmo, our endeavour is to positively impact and add value to the entire ecosystem including banks, consumers and merchants, with the combined service offerings of PayU and Wibmo. We will partner with leading banks to enable digital banking, merchants will gain with higher conversions rates and increased sales, and consumers will have a frictionless experience in completing digital payments transactions,” he added.
The said acquisition is expected to enable PayU to strengthen its digital payments system for processing transactions on issuing and acquiring side jointly, creating a seamless payments experience for Indian consumers speeding its credit business by leveraging big data to power credit across various online and offline merchants. The investment has taken PayU’s total investment history beyond the $500 million mark.
, “PayU has evolved within the complex payments landscape to become India’s biggest online payments processor, serving more than 350,000 merchants. We are excited to embark on this next chapter of Wibmo’s growth with PayU. By combining our track record and expertise in payment security and mobile payments with PayU’s strong merchant network and heritage in payments, the combined entity will be focussed on delivering more secure and seamless payments experience to its customers,” said Govind Setlur, founder and CEO, Wibmo.
Post acquisition, PayU and Wibmo will maintain to operate separately while concurrently structuring business solutions together from their technology platforms.